Ann: FY18 Update, page-16

Bobsa - I used a pre tax PE ratio of 15 which is a post tax ratio of 21. This reflects a strong growth company. This could be an appropriate multiple for steady state when the business reaches something like $25 billion in fua. By this stage, the business will start to experience significant outflows that makes growth increasingly difficult. Also growth tends to come at the expense of margin.

There is nothing wrong with paying multiples of of 50 or more for a high growth company. However I think that it is unwise to use such a number as a valuation basis. It is better to look forward to a stable state for the business.

In any case, I think that HUB is a well run business and will earn its value. The price may just be running a little ahead of itself. As long as existing investors maintain the faith and fum grows you won’t buy in cheaper. But in the end it does have to produce profit to support its price or be able to produce profit =value to a buyer equal to its price.